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Go-Ahead Group PLC (GOG)

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Friday 19 May, 2000

Go-Ahead Group PLC

Joint Venture

Go-Ahead Group PLC
19 May 2000

                    THE GO-AHEAD GROUP PLC
                               
                WITHDRAWAL FROM JOINT VENTURES
                     IN RAILWAYS IN SWEDEN

The  group's  interim  statement published  in  February  drew
attention  to  unexpected  difficulties  in  starting  up  the
Citypendeln  commuter rail business in Stockholm.  Citypendeln
AB  is the joint venture company owned by VIA-GTI, BK-Tag  and
Go-Ahead  in which Go-Ahead has a 39% stake. Discussions  with
the  Swedish  authorities have failed to provide a  basis  for
continuing   the   Citypendeln   contract   which   would   be
satisfactory to Go-Ahead. Consequently, Go-Ahead has agreed to
terminate  its involvement in the project by transferring  its
interest to the majority partner, VIA-GTI.

In addition, it has been found impossible to continue the rail
joint  venture in western Sweden in which Go-Ahead has  a  29%
stake. Together with partners VIA-GTI and BK-Tag, Go-Ahead has
shut down the Sydvasten AB joint venture.

The  total  cost  of  the  group's involvement  in  the  joint
ventures   in   Sweden,   including  exceptional   items,   is
anticipated not to exceed £4.5 million.

The  withdrawal will enable the group to concentrate its  rail
strategy in developing its UK rail franchises.

Preliminary  results for the year ending 1 July 2000  will  be
announced  in  September. With the exception  of  the  Swedish
joint  ventures,  trading has been in line  with  the  Board's
expectations as outlined at the time of the interim statement.

For further information please contact:

Go-Ahead Group plc
Martin Ballinger                          Today:  01293 516865
Chris Moyes                         Thereafter:  0191 232 3123
Ian Butcher

Ludgate Communications
Richard Hews                                      0171 253 2252
Victoria Martin